What is the future growth of Delta Air Lines?

Expansion of International Network

Currently, Delta is still in the process of pursuing more global routes, especially to Latin American Airlines and Asia. It bought 49% of the stocks in Aeroméxico, a Mexico-based airline company that is the country’s flagship carrier. This provides Delta with a solid base in Mexico and other areas of Latin America. Another strategy that Delta has used is partnering with key Asian carriers such as China Eastern, Korean Air, and Virgin Australia to access the Asian routes. These partnerships give the company the right to occupy space in airports that might have limited space for other planes to land.

Currently, the trans-Pacific routes have the right schedules and a compatible frequent flyer program between Delta and its joint venture partners. In 2018, it introduced the first-ever one-stop-connection flights between the United States and India. More of such new international routes can be expected because while Delta continues to have dominant access to key focus cities such as Atlanta and has expanded its codeshares to fuel its international expansion. This will also feed into Delta’s domestic network. Delta has an extensive domestic network, which is fed by its international network.

Fleet Modernization

Delta has the lowest fuel consumption per aircraft mile amongst the other competing network carriers in the United States. It aims to having successfully replaced 20% of narrow-body aircraft by the year 2020 through new acquisitions such as Airbus A321neo. These planes are merely 20–30 percent more fuel-efficient as compared to the earlier models. It will also facilitate the early replacement of less efficient, older-generation wide-body aircraft within Delta’s fleet. For long-haul aircraft, the ongoing and future fleet renewal involves taking delivery of Airbus A330neo and A350 in the coming years.

Tech-Driven Customer Experience Initiatives

Delta is eyeing being among the first and foremost in the U. S. airline industry in terms of offering a superior, integrated customer experience bolstered by cutting-edge technology. One of the changes it has made is to establish an Internet of Things (IoT) for the management of customer information across systems. This is evident through one application whereby employees are given more information concerning their customers so that they can offer them personalized services. Delta is also piloting biometrics and machine learning to implement baggage handling and check-in processes without contact. Another creative pilot in progress is geofencing to provide preventative notifications and AI chatbots to solve customers’ problems more swiftly.

Accelerating airport renovation projects

Delta has a serious expansion plan at some of the strategic airports, which include Los Angeles, New York LaGuardia, and Salt Lake City. The $1.9 billion LAX expansion plan entails relocating Terminals 2 and 3 for a bigger Delta’s presence. Delta is also involved in an $8 billion revitalization program of Terminal C of LaGuardia airport Meanwhile, in Salt Lake City, Utah, there is a $3. 6 billion redevelopment plan where Delta’s capacity will be doubled by 2024. These projects will be multi-year in nature and will support higher levels of operation efficiency and the best-in-class airport experience once passenger traffic resumes its growth.

Building loyalty & partnerships

The establishment of a brand base is crucial for an airline with the goal of making profits in the long run. Another program that was rolled out in 2019 was the Status Match Challenge, which matched the elite status benefits of travelers switching from competitors offered by Delta. It also had a Colors of Travel platform to identify and reward occasional business travelers. In operations, Delta purchased 4. 3 percent of the equity stake in Korean Air’s parent company to enhance the trans-Pacific joint venture. The other two key partners by whom Delta receives great value flyers include American Express and Lyft. Strengthening such relations constitutes a key facet of Delta’s customer loyalty and expansion objectives.

Continuity services that can be provided to the companies

Delta has been pursuing expansion of its commercial continuity services that are focused on the enterprise market. This also encompasses the Delta Private Jets brand, that incorporates aircraft charter services. It also has dedicated cargo charters for industrial transport, excluding the standard routes available for commercial use. These services were in high demand during COVID-19, especially for the transport of medical equipment and other essentials. As consumer travel decreased, Delta sought a focused shift to capitalize on the increased growth associated with cargo and private jets. These diversified revenue streams will remain afloat after the pandemic and will thus pose a threat to competitors who may attempt to penetrate the market after observing that the players returned to business.

The leisure travel segment is likely to grow and the volatility of the travel industry needs to be addressed.

The leisure travel segment is set for the largest recovery as restrictions ease and pent-up demand is realized. Delta is still expecting domestic leisure to return to pre-COVID-19 levels, even by the end of the full year 2021. He has grown in catering capacity to target an increase in short-haul leisure and VFR traffic. Delta also aims to be adaptive to leverage capacities where needed in different regions based on the pandemic’s recovery pace. Families could be more at risk given market fluctuations when new variants are identified. Delta has one goal: achieving profitability by ironing out unpredictability and sustaining strategic agility, especially in aircraft allocation and cost structure.

ESG efforts

Sustainability factors that include environment, social, and governance (ESG) are increasingly emerging as benchmarks for investment. Delta has increased its efforts to improve in this field and aims to have carbon-neutral flying by 2050. For social purposes, Delta is for creating jobs in disadvantaged areas, but black people in particular. According to Delta, its ESG pledge could help it obtain the investor cash required to finance future expansion. It also makes the brand more attractive to consumers who are conscious of the environment and social world.

Therefore, the current strategies that Delta uses include an international network, a greater fleet, improved customer experience, and brand commitment as key ways to achieve future growth. Now, besides speeding up airport infrastructure renewal and signing contracts on business continuity services, one more factor can be mentioned. However, there is still a more extensive timeline regarding the recovery from the pandemic. Fluently controlling volatility by strategic agility will be crucial for Delta as it builds up the company’s strategic development path. With a firm and sound business foundation and strategic corporate direction and vision established, Delta appears well-equipped and positioned to seize growth prospects in the future.

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